Supply Chain Management Task

YUDITHYA AULIA

223411017

D3-MLM/A

Summary of Supply Chain Management

The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers,  and customers themselves.  
The supply chain includes all functions involved in receiving and filling a customer request.

Source: Chopra, Sunil and Peter Meindl. Supply Chain Management. 2 ed. Upper Saddle River: Pearson Prentice Hall, 2004

Functions in receiveng and fulfilling the customer request: 

•  new product development,
•  marketing,
•  operations,
•  distribution,
•  finance, 
• and customer service.

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.

Source: The term supply chain management was coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982

 The supply chain is the total flow of materials, information and cash,  from the suppliers' suppliers, right through an enterprise to the customers' customers

Based on thepicture, materials flow one way; cash (ideally) flows in the opposite direction and information needs be visible throughout to give control over what is happening in the chain.

Supply Chain management is important, because it can drive strategy, it covers all the distribution and material movement in the world & impacts the cost and service at the company level.

Supply Chain Goals

      Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on

–        Revenue growth

–        Better asset utilization

–        Cost reduction.

Supply Chain Management Underlying Principles

• Compression (Planning/Manufacturing/Supply)
• Conformance ( Forecasts/Plans/Distribution)
• Co-operation (cross- functional)
• Communication (real time data)